Cencora, Inc. · NYSE:COR
Cencora — AmerisourceBergen — Investor Day (June 2022)
65 slides from Cencora's investor day presentation, Jun 1, 2022
Slide 1: Leading in global healthcare solutions to create healthier futures
Leading in global healthcare solutions to create healthier futures AmerisourceBergen Investor Day June 1, 2022
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements Certain of the statements contained in this presentation are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Securit
Slide 3: Agenda
Agenda Welcome Bennett Murphy, SVP, Investor Relations Our purpose, our strategy, our vision Steve Collis, Chairman, President & CEO Strategic imperatives to deliver our vision Bob Mauch, EVP and Group President Building on a strong financial foundation to drive sustainable growth and shareholder va
Slide 4: We are united in our responsibility
We are united in Our responsibility _
Slide 5: Our purpose, our strategy, our vision
Our purpose, our strategy, our vision Steve Collis, Chairman, President & CEO
Slide 6: AmerisourceBergen's leadership team
AmerisourceBergen’s leadership team Steven H. Collis Silvana Battaglia Elizabeth S. Campbell Gina K. Clark Chairman, President and CEO EVP and Chief Human Resources EVP and Chief Legal Officer EVP and Chief Communications & Officer Administration Officer James F. Cleary Leslie E. Donato Robert P. Ma
Slide 7: We serve as a key pillar of the global healthcare system
We serve as a key pillar of the global healthcare system Our scale, expertise, and extensive network of customers and partners allow us to play a key role in supporting access, innovation, and improved outcomes $214B+ 42k in annual team members revenue globally 600+ 75+ global offices countries 7
Slide 8: Connecting providers and biopharma manufacturers
Connecting providers and biopharma manufacturers Our scale, expertise, and extensive network of customers and partners allow us to play a key role in supporting biopharma innovation and access Providers Biopharma manufacturers Patient experience solutions and Health economics & market insights acces
Slide 9: Embedded leadership competencies advance talent and culture
Embedded leadership competencies advance talent and culture DE&I Collaboration Innovation & executional excellence Purpose People forward Enterprise powered Action biased Creatively resourceful Next minded Purpose activist The ability to build The ability to The ability to The ability to The ability
Slide 10: Taking decisive steps to build on foundation for growth
Taking decisive steps to build on foundation for growth We have continued to take significant steps to build on our foundation, including: • Reinforcing the strengths of our culture and operating model by investing in our talent, and aligning the organization to support growth and innovation • Lever
Slide 11: Biopharmaceutical innovation continues to create opportunities for us to capitalize on our leading specialty capabilities
Biopharmaceutical innovation continues to create opportunities for us to capitalize on our leading specialty capabilities Biopharmaceutical advancements and innovation • Innovation: growth in specialty, gene therapy, digital therapeutics & targeted therapies • Biopharma manufacturer trends: number o
Slide 12: Additional external trends are creating opportunity
Additional external trends are creating opportunity Managing total cost of care Cost burden: rising public healthcare & patient’s out-of-pocket expenses Biosimilars: growing generic and biosimilar alternatives offering cost relief Contracting: increasing interest of value-based contract arrangements
Slide 13: Creating differentiated value for our stakeholders
Creating differentiated value for our stakeholders Our long-term, sustainable growth is supported by investments in our people and culture and commitment to ESG Why we exist Our 5 Strategic Imperatives We are united in our responsibility to create healthier futures Advance core business Enhance capa
Slide 14: Alliance Healthcare acquisition supports continued advancement of our business and strategic imperatives
Alliance Healthcare acquisition supports continued advancement of our business and strategic imperatives Lead with market leaders Expand on leadership in Specialty Expands relationships with key anchor Adds capabilities to support specialty customers, and adds Boots UK and leading distribution and c
Slide 15: AmerisourceBergen: A global healthcare leader
AmerisourceBergen: A global healthcare leader Creating unparalleled access, efficiency, and reliability across the global pharmaceutical supply chain Foundation of leadership Differentiated by complementary Driving sustainable long-term growth higher-margin & high-growth by enhancing our commercial
Slide 16: Advancing our long-term vision
Advancing our long-term vision Deliver long-term sustainable growth by maintaining leading share of pharmaceutical distribution and best-in-class efficiency, while growing higher-margin and high- growth businesses within our U.S. and International reportable segments 16
Slide 17: Strategic imperatives to deliver our vision
Strategic imperatives to deliver our vision Bob Mauch, EVP and Group President 06/01/2022 17
Slide 18: Strategic imperatives guide path toward long-term vision
Strategic imperatives guide path toward long-term vision 1 Lead with market leaders Leverage infrastructure to increase efficiency 2 and support our customers in meeting consumer needs 3 Expand on leadership in Specialty 4 Contribute to Rx outcomes 5 Invest in innovation to further drive differentia
Slide 19: Global base of key anchor customers across all segments
Global base of key anchor customers across all segments Supporting patient access, wherever a prescription is needed Biopharma manufacturers Upstream Downstream Animal health Community Community and Government Health systems physicians specialty pharmacy agencies We form long-lasting relationships w
Slide 20: Providing services and solutions in key channels
Providing services and solutions in key channels Biopharma Community and Specialty physician Health systems and Animal health manufacturers specialty pharmacy services specialty services • Health economics & • Generics purchasing • Contracting and GPO • Full line and specialty Companion Animals mark
Slide 21: Strategic imperatives guide path toward long-term vision
Strategic imperatives guide path toward long-term vision 1 Lead with market leaders Leverage infrastructure to increase efficiency 2 and support our customers in meeting consumer needs 3 Expand on leadership in Specialty 4 Contribute to Rx outcomes 5 Invest in innovation to further drive differentia
Slide 22: Our infrastructure is efficient and technology-enabled
Our infrastructure is efficient and technology-enabled 22
Slide 23: Case study: supporting the needs of veterinarian customers
Case study: supporting the needs of veterinarian customers Pet portal Teletriage Digital automated marketing Digital check-in Home delivery fulfillment AllyDVM Commercial partnership AllyDVM AllyDVM Commercial partnership Pet parent: “Scramble isn’t Dr: “Based on what I see, I’d Pet parent: “I appre
Slide 24: Case study: supporting the needs of health system customers
Case study: supporting the needs of health system customers Drug shortage Purchasing mitigation optimization Health systems Product and payer Site of care access solutions strategy 24
Slide 25: Strategic imperatives guide path toward long-term vision
Strategic imperatives guide path toward long-term vision 1 Lead with market leaders Leverage infrastructure to increase efficiency 2 and support our customers in meeting consumer needs 3 Expand on leadership in Specialty 4 Contribute to Rx outcomes 5 Invest in innovation to further drive differentia
Slide 26: Broadest portfolio of leading specialty solutions
Broadest portfolio of leading specialty solutions Expanding our suite of solutions to build on our position as partner of choice Globally scaled logistics and 3PL services Wholesale and pre-wholesaling Clinical trial logistics in Temperature control in 15 countries 50+ countries with direct- and ord
Slide 27: Supporting pharmaceutical innovation across the clinical and commercialization journey
Supporting pharmaceutical innovation across the clinical and commercialization journey Approval Coverage Payment • Global clinical trial logistics • Market access consulting • Reimbursement and health policy insights • Ongoing pharmacovigilance • Global health economics consulting • Patient access s
Slide 28: Specialty strategy in action: cell & gene therapy
Specialty strategy in action: cell & gene therapy Cell & gene therapy logistics • Global liquid nitrogen charging network • Growing cryostorage capabilities Strategic vision TrakCel cell & gene therapy orchestration platform • Manage cell & gene therapy product journey from patient enrollment to inf
Slide 29: Strategic imperatives guide path toward long-term vision
Strategic imperatives guide path toward long-term vision 1 Lead with market leaders Leverage infrastructure to increase efficiency 2 and support our customers in meeting consumer needs 3 Expand on leadership in Specialty 4 Contribute to Rx outcomes 5 Invest in innovation to further drive differentia
Slide 30: Uniquely positioned to capture significant growth opportunities in biopharma market
Uniquely positioned to capture significant growth opportunities in biopharma market Market trend AmerisourceBergen’s differentiating strength 1 Total addressable market* for outsourced biopharma manufacturer services is attractive at ~$100B+ and Strong reputation and customer relationships across la
Slide 31: Strategic imperatives guide path toward long-term vision
Strategic imperatives guide path toward long-term vision 1 Lead with market leaders Leverage infrastructure to increase efficiency 2 and support our customers in meeting consumer needs 3 Expand on leadership in Specialty 4 Contribute to Rx outcomes 5 Invest in innovation to further drive differentia
Slide 32: Building the next generation of solutions
Building the next generation of solutions Leveraging strategic partnerships Internal investments and capability and venture capital to support Areas of focus building innovation • Clinical trial services • Investing to support customer needs • Partner with industry leaders to and ensure continued le
Slide 33: Driving innovation with technology and talent
Driving innovation with technology and talent Enterprise Cloud Data and Product Leadership Horizontal fabric analytics mentality competencies mindset Investing in Implementing Full review of Increasing Supporting Innovation Board, enterprise cloud strategy current data maturity in enterprise Commerc
Slide 34: Innovation in action: Clinical Trial Navigator
Innovation in action: Clinical Trial Navigator Suite of capabilities addressing multiple challenges in the clinical development process Protocol explorer Site assist Scenario planning, protocol Search insights, site identification feasibility assessment, search, site shortlisting, pharma protocol de
Slide 35: Innovation in action: TrakCel
Innovation in action: TrakCel Accelerating cell & gene speed to therapy using cutting edge technologies 35
Slide 36: Innovation in action: AB Marketplace
Innovation in action: AB Marketplace Our first online marketplace connects Marketing and partnerships “front of store” suppliers with providers across the country Customer FIRST experience Sourcing, selection, and logistics AB Marketplace platform Monetization model Supplier services Regulatory & co
Slide 37: Strategic imperatives guide path toward long-term vision
Strategic imperatives guide path toward long-term vision 1 Lead with market leaders Leverage infrastructure to increase efficiency 2 and support our customers in meeting consumer needs 3 Expand on leadership in Specialty 4 Contribute to Rx outcomes 5 Invest in innovation to further drive differentia
Slide 38: Break
38 06/01/2022 Break
Slide 39: Building on a strong financial foundation to drive sustainable growth and shareholder value
Building on a strong financial foundation to drive sustainable growth and shareholder value Jim Cleary, EVP & CFO 06/01/2022 39
Slide 40: Fiscal 2022 highlights
Fiscal 2022 highlights Strategic, • Strong execution and momentum across business Operational • Supporting global response to COVID-19 pandemic, including distributing COVID- and 19 treatments in the U.S. and supporting vaccinations and testing outside the U.S. Financial • Successfully integrating A
Slide 41: Delivering long-term, sustainable growth
Delivering long-term, sustainable growth Adjusted diluted EPS1 • 12% CAGR since FY16, based on mid-point of FY22 guidance • 10% CAGR excluding COVID contribution $10.80 - $11.052 $9.26 $7.90 $7.09 $6.49 $5.62 $5.88 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Adj. Diluted EPS Fiscal 2022 Adj. EPS Guidance Cov
Slide 42: Sustainable adjusted free cash flow generation and growth
Sustainable adjusted free cash flow generation and growth Adjusted free cash flow1 • 11% CAGR since FY17, based on mid-point of FY22 guidance $2.25B $2.09B $1.94B $1.89B $1.68B $1.32B FY17 FY18 FY19 FY20 FY21 FY22 Adjusted Free Cash Flow Fiscal 2022 Adjusted Free Cash Flow Guidance Mid-point 42 1The
Slide 43: Value-creating capital deployment strategy
Value-creating capital deployment strategy Strong focus on Return 5-year cumulative capital deployment on Invested Capital • Average ROIC in the Share repurchases CapEx high-teens from FY $1.9B $2.1B 2017 to FY 2021 • Over $12.4 billion invested1, enabled by Dividends $1.7B our strong free cash flow
Slide 44: Well-positioned to create long-term growth
Well-positioned to create long-term growth Value-enhancing Focus on operating capital deployment income growth Leadership in Leverage scale and animal health efficiency Long-term value creation Differentiated biopharma Leading customer manufacturer services partnerships 44 Leadership in specialty
Slide 45: Baseline for long-term growth
Baseline for long-term growth FY22 adjusted diluted earnings per share guidance1 $10.80 to $11.05 U.S. Segment: FY22 COVID-19 EPS Contribution $0.60 International Segment: FY22 COVID-19 EPS Contribution $0.10 FY22 baseline adjusted diluted earnings per share $10.10 to $10.35 45 1The Company does not
Slide 46: Long-term growth outlook
Long-term growth outlook Adjusted Operating Income1 5% to 8% U.S. Healthcare Solutions Segment 5% to 8% International Healthcare Solutions Segment 5% to 8% (Growth on constant currency basis) Capital Deployment 3% to 4% Adjusted Diluted EPS1 8% to 12% 46 1The Company does not provide forward-looking
Slide 47: Growth drivers in U.S. Healthcare Solutions
Growth drivers in U.S. Healthcare Solutions Building on established leadership positions Long-term strategic relationships with key anchor customers across all channels Leadership in specialty distribution and biopharma manufacturer services differentiates our upstream and downstream value propositi
Slide 48: Growth drivers in International Healthcare Solutions
Growth drivers in International Healthcare Solutions Leveraging global scale & leading capabilities Leading pan-European wholesaler and complementary solutions provider Innovative provider of upstream biopharma manufacturer services, including a range of key market services and solutions Global spec
Slide 49: Incremental growth drivers from capital deployment
Incremental growth drivers from capital deployment Deploying strong free cash flow to drive incremental returns Strategic, disciplined approach to M&A, advancing our business imperatives Opportunistic share repurchases, including new board authorization to repurchase $1 billion in shares Enabled by
Slide 50: Value creation drivers
Value creation drivers Foundation in pharmaceutical distribution Focus on ROIC • Leading customer partnerships in key areas • Legacy of strong Return on Invested Capital including retail, specialty, health systems and • Investments in the business and innovation to drive animal health in the United
Slide 51: Our purpose and commitments
Our purpose and commitments Susan Lorenz-Fisher, SVP, Corporate Responsibility & Sustainability 06/01/2022 51
Slide 52: Our purpose guides our strategy and actions as exhibited by progress against ESG goals
We are united in Our purpose guides our strategy and actions our responsibility to as exhibited by progress against ESG goals create healthier futures We strive to foster a positive impact on the planet and people – centered on improving access and equity in healthcare – through three priorities tha
Slide 53: Purpose driven team members
Purpose driven team members Introduced our new integrated talent framework, which includes a new leadership competency model, enterprise learning strategy, and modern approach to performance management In light of many challenges of COVID-19, increased support for team members, including enhanced me
Slide 54: Resilient and sustainable operations
Resilient and sustainable operations Reduced greenhouse gas emissions by 4.6% in fiscal 2021 from fiscal 2019 levels and conducted a detailed analysis on Scope 3 emissions Formally committed to establish carbon reduction goal aligned with Science-Based Target initiative guidance and submitted draft
Slide 55: Healthy communities for all
Healthy communities for all Supporting humanitarian efforts in western Europe through donations to non- profit partners from the AB Foundation and in-kind support from across our operations Supporting pandemic response with antibody and antiviral treatments in the U.S., vaccines in 30+ countries, an
Slide 56: Integrating ESG into our culture
Integrating ESG into our culture Board oversight of ESG strategy and cross-functional global council empowered to further embed ESG in business Published 6th ESG report, aligned with SASB, TCFD, GRI, UN SDGs, WEF Stakeholder Capitalism Metrics and externally assured Formal signatories of the United
Slide 57: Q&A
Q&A Steve Collis, Chairman, President & CEO Bob Mauch, EVP & Group President 06/01/2022 Jim Cleary, EVP & CFO 57
Slide 58: Key takeaways
Key takeaways AmerisourceBergen is global Strong financial foundation with healthcare solutions leader with a disciplined capital allocation to foundation in pharmaceutical drive sustainable growth distribution Long-term vision of Building on ESG strategy to expanding leadership and live our purpose
Slide 59: Thank you
Slide 60: Appendix
Appendix
Slide 61: Adjusted diluted earnings per share
Adjusted diluted earnings per share Fiscal years ended September 30, 2016, through September 30, 2021 FY2021 FY20201 FY2019 FY2018 FY2017 FY2016 GAAP diluted EPS $ 7.39 $ (16.65) $ 4.04 $ 7.53 $ 1.64 $ 6.32 Gains from antitrust litigation settlements (0.58) (0.03) (0.51) (0.12) - (0.35) LIFO (credit
Slide 62: Reconciliation of diluted weighted average common shares outstanding
Reconciliation of diluted weighted average common shares outstanding Fiscal year ended September 30, 2020 (In thousands) FY2020 Basic shares outstanding 204,094 Stock option and restricted stock unit dilution - GAAP diluted shares outstanding 204,094 Stock option and restricted stock unit dilution1
Slide 63: Adjusted free cash flow
Adjusted free cash flow Fiscal years ended September 30, 2017, through September 30, 2021 FY2021 FY2020 FY2019 FY2018 FY2017 Operating cash flows $ 2,666,586 $ 2,207,040 $ 2,344,023 $ 1,411,388 $ 1,504,138 Capital expenditures (438,217) (369,677) (310,222) (336,411) (466,397) Gains from antitrust li
Slide 64: Capital deployment
Capital deployment Fiscal years ended September 30, 2017, through September 30, 2021 (In thousands) FY2021 FY2020 FY2019 FY2018 FY2017 Capital expenditures $438,217 $369,677 $310,222 $336,411 $466,397 Mergers and acquisitions $5,725,660 $56,080 $63,951 $785,299 $72,995 Dividends $366,648 $343,578 $3
Slide 65: Contact
Contact Bennett S. Murphy Senior Vice President Investor Relations bmurphy@amerisourcebergen.com